The Research On The Normative Development Of Carbon Financial Market In China

Since the industrial revolution, industrial activities have been more frequently and human beings have been increasingly dependent on fossil energy, resulting in an increase of CO2 and other greenhouse gases in the air, the problem of climate change is becoming a major obstacle on the global economic development path. Under environmental pressure and the political gambling, the global economy has been seeking to a low-carbon development, many countries’ economies have experienced different degrees of low-carbon, and some regional carbon financial markets have become increasingly prosperous. At present, the EU and the US have formed a mature mechanism of carbon financial market in not just building a sound system, but also cultivating the market main body, developing innovative products. Compared to other countries, China is the world’s largest emitter of greenhouse gases, showing a great potential of carbon reduction. Because of the carbon financial market has just started, the market is in lack of normative framework, the establishment of a normative and comprehensive carbon finance market system is imperative.Given the situations above, this paper based on China’s carbon financial markets as the research object, firstly it introduced the significance and purpose of this paper, analyzed research of historical literature, illustrated research ideas and methods, introduced innovations and shortcomings; Secondly, the paper gave a theoretical analysis of carbon financial markets, defined the specific content of carbon finance, introduced the carbon finance market system, explained the standards of normative development, described the basic theory of carbon finance as a theoretical support for the follow-up study; In chapter three the paper reviewed the development of carbon markets in the EU and the US, from the aspects of market system, participants, products etc; And then the paper combed the development status of China’s carbon financial market in detail, introduced the system construction and business situation of carbon financial market, analyzed the problems and reasons of the carbon financial market, such as legal support, policy support, platform building, gave a real case study on the market effectiveness with taking the trading prices as the research object; Finally the paper put forward suggestions about how to develop China’s carbon financial market.The main research conclusions of this paper are as follows: China’s carbon financial market system has been initially built, the legal framework is forming clearly, carbon trading markets of five provinces and two cities are operating in good condition, financial institutions, particularly commercial banks play very important role in the market. But the level of existing legislation is too low to support the market development; Pilot markets are small and fragmented, can’t reach the effective state; Supply of external policies is relatively scarce, the markets are in lack of internal participants and financial products. To establish a normative and efficient financial market, the government need to pay more and more efforts, a spot market must be established with high standard, the plan of establishing derivatives market should be put on the agenda, and according to the international market trends, China should take a incremental way to link with the international carbon market.